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The no-fault insurance law currently in force in Florida will expire on October 1 after being in effect for 37 years. Unless legislators act quickly, state residents can expect to encounter a slew of uninsured drivers on the road, says the Florida Department of Highway Safety and Motor Vehicles.    Says Wayne NeSmith, president of… Continue reading Clock on Mandatory Personal Injury Auto Insurance Ticking Toward Expiration

The House Committee on Financial Services has taken a major step toward extending the federal terrorism insurance backstop by passing H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA). The Independent Insurance Agents & Brokers of America (the Big “I”) strongly supports the bill, sponsored by Rep. Michael Capuano (D-Mass.) and… Continue reading House Committee Takes Action on Terrorism Insurance Bill as Big “I” Says Bravo

Reinsurer Scottish Re reported investments with subprime exposure of about $2.1 billion, and of Alt-A about $1B, vs. shareholders’ equity of about $1.1 billion. Oppenheimer called the exposure “significant,” and noted that subprime, Alt-A portfolios have seen unrealized losses of about 6.6% of book value. Firm maintains neutral rating, forward estimates. Posted at 10:45 a.m.

The benchmark S&P 500 saw gains for the entire year eliminated when U.S. stocks fell yesterday following a steep drop in shares of Countrywide Financial, prompted by a brokerage downgrade and rumors that the leading mortgage lender in the U.S. was having difficulty raising money in the commercial paper market. The flurry of activity surrounding… Continue reading Mortgage Lender Shares Drop, Erasing S&P Gains

According to Tobias Levkovich, Citigroup Inc. chief equity strategist, the recent credit market woes do not a bear market make. Levkovich says members of the S&P 500, excluding financials, “are sitting on roughly $800 billion of cash, indicating a widespread lack of need for bank loans.” He added that the biggest U.S. companies “control more… Continue reading No Bear Market Here, Says Citi Strategist

A spokesperson said the U.S. Federal Reserve Bank of New York made another cash infusion yesterday into the credit-crunched financial system to serve increased demands for liquidity in light of upset fueled by the high-risk sub-prime mortgage sector. The bank, which manages operations of the short-term federal funds market, injected $7 billion on this occasion… Continue reading Fed Injects More Cash to Meet Liquidity Demands

Looking back to 1998 when the collapse of Long-Term Capital Management LP kicked off a credit crisis, stock market investors should hold onto their U.S. stocks longer than global benchmarks may suggest in the face of today’s subprime mortgage rollercoaster ride, says Credit Suisse Group. Credit Suisse analysts led by London-based Andrew Garthwaite said that… Continue reading Credit Suisse Says U.S. Stocks Safer Than After LTCM

Tropical Storm Dean has strengthened into the first hurricane of the 2007 Atlantic storm season, increasing power as it speeds toward the Caribbean islands, announced the U.S. National Hurricane Center. The Center expects Dean, which posted sustained winds of 75 miles per hour by 5:00 a.m. EDT this morning, to continue gathering strength in the… Continue reading First of the Season’s Hurricanes Arrives

An internal audit committee review of Aon Corp.’s stock option grant practices conducted from 1994-2006 found its procedures were incorrect for several thousand awards, resulting in incorrect measurement dates to be used for financial accounting and tax purposes. In a filing with the Securities and Exchange Commission, Aon said no misconduct by current or former… Continue reading Aon Stock Option Grant Practices Found Incorrect

Final approval has been granted on a $55 million settlement agreement in the case of Satchell, et. Al. vs. FedEx Express, a subsidiary of FedEx Corp., announced a spokesperson for the company. The case alleged racial discrimination practices at FedEx Express. Insurance will cover the $55 million payment, which includes class counsel and compensation to… Continue reading $55 Million Class Action Lawsuit Settled with FedEx Subsidiary